INFORMATION TECHNOLOGY FOR BUSINESS

UNIT I

1.1 NEED FOR INFORMATION SYSTEM FOR BUSINESS

Information System Definition : Information System is a group of connected

components Input data Process data Output data Feed backWhich are dependent on each other.

Example : ATM’s Reservation Systems.

NEED FOR ISFast and Accurate Transaction ProcessingStorage with Large-capacity and Fast

access.Fast communications.Competitive WeaponsSupport for Decision –makingReduction in Information OverloadCross Divisional Abilities

1.2 BUSINESS IN THE INFORMATION AGE

These various trends put a lot of pressure on the companies. Different Pressures the company has to deal with are,Global competition for trade and Labor.Necessity of real time operations.Rapidly changing workforce.Customer orientationTechnology InnovationOverload of InformationSocial responsibilityEthical issues.

CUSTOMER ORIENTATIONCustomer satisfaction involves giving

complete information to the customers such as..

1. Cost of a Product 2. Lifetime of a Product3. Various feature of the Product etc.

Different companies must keep updating their website regularly with new information about their products.

ORGANIZATIONAL RESPONSES1. Strategic Systems2. Business Process Re-engineering(BPR)3. E-Commerce4. Business Alliances5. Continuous improvement efforts.

STRATEGIC SYSTEMS - CHARACTERISTSADHOCNESSUNEXPECTEDNESSPREDICTIVENESSSUMMARYNESSEXTERNAL SOURCEUNSTRUCTUREDSUBJECTIVENESS

Accounting / Finance

Marketing Production Human Resources

TACTICAL:

Budgeting Sales Management

Materials RequirementsPlanning

Job analysis and design

Cash Management

Advertising and Promotion

Just in time Recruiting

Capital Budgeting Pricing Capacity Planning

Compensation and benefits

Investment Management

Distribution Channel

Production Scheduling

Succession Planning

Competitive Tracking

Product design and Development

Manufacturing Resource Planning

Computer Integrated manufacturing

STRATEGIC:

Financial Condition Analysis

Sales forecasting Site Planning Selection

Workforce planning

Long – term forecasting

Market research Technology Planning and Assessment

Labor Negotiations

Product planning and development

Process Postioning

BUSINESS PROCESS RE-ENGINEERING(BPR)

Re-engineering has impact on,1. Job design2. Organisational Structure3. Career Path4. Work Standards5. Management Style6. Training and7. People needed.

E-COMMERCEE-Commerce applications are built on the

existing technology infrastructure that is myriad of computers, communications networks and communication software forming the information superhighway.

The uses of each of the building blocks in the infrastructure arei. Common business servicesii. Messaging and information distributioniii. Multimedia Content and Network publishingiv. The information Superhighway

BUSINESS ALLIANCESDifferent forms of business alliances are,

a) Transmission of resources properly.

b) Reliable relationship between customer and supplier.

These alliances are obtained by the following processes.

i. Supply chain management

ii. Enterprise resource planning

CONTINOUS IMPROVEMENT EFFORTSVarious Efforts of Improvement are,

Just – In – Time (JIT)Total Quality Management (TQM)

TOTAL QUALITY MANAGEMENT(TQM)Global

competition For trade and

Labor

Necessity for real time

operations

Customer orientatio

n Technolo

gy innovatio

n

Overload of information

Social responsibility

Rapidly changing workforce

Ethical issues

Business Pressures

Business Pressures

Business Alliance

Necessity for real time operations

Rapidly changing workforce

Continuous improvement

efforts

Business Process Reengineering

(BPR)

INFORMATION SYSTEMS CONCEPTSInformation System

Information is the processed form of a data.Types of Information SystemsOperationalTactical Strategic Planning Systems

Components of Information SystemsHardwareSoftwarePeopleData StorageProcedures

COMPUTER BASED IS (CBIS)CBIS: An Information System that utilizes the

computer and telecommunication technology to accomplish its tasks is called CBIS.

Components:1. Hardware2. Software3. Database4. Network5. Procedure6. People

CBIS

hardware

Network internet or communica

tion

CBIS

software database

people

procedures

Importance of CBISFacilitates support organization by fulfilling

information needs of organizations workforce.The purpose of CBIS :

Long term benefitStrategic planning to stand against its competitors

It allows alteration of the structure of the organization and improve existing ones

CBIS capture , transform and distribute information.

It also improves decision makingPerformanceIncrease profitability

CS Vs CBISA Computer System is an

electronic system that takes input, processes the input and generates output-self in the specified form.

It can do calculation a a much greater speed than human beings.

Moreover, It can store data temporarily as well as permanently.

CBIS is a special type of IS that is partially or completely computerized.

Some IS take data while others may take information from other IS’s.

However, CBIS takes only data as input.

Generally CBIS is interchangeably used with IS.

Arithmetic Logic Unit

ControlUnit

Memory Unit

OutputUnit

Input Unit

Computer System (CS)Components:

Input Unit

Output Unit

Memory Unit

Central Processing Unit (CPU)

Categories of ISDepending upon the level of support provided while executing the operations of different levels of an organization the following categories evolved.

1. Operation Support System

2. Management Support System

Operation Support System OSS closely monitors the on-going

transactions with the organizations.

OSS mainly required for performing low level operations. It provides support to the organization by keeping track of information regarding activities, which are performed on daily basis.

1. Transaction Processing System

2. Office Automation System

Management Support System MSS is used by tactical level managers as

well as strategic level managers.

Its main objective is to Provide information and support, which is required by managers in performing decision –making process.

1. Management Information System

2. Decision Support System

3. Executive Information System

QUERIES